According to a source close to the matter, Coinbase, a prominent cryptocurrency exchange, is engaged in discussions with Bybit, a leading crypto trading platform, to explore opportunities for tokenizing, securing, and distributing assets such as US public and pre-IPO stocks. The ongoing talks do not involve any acquisition or investment to enable Bybit's entry into the US market, as previously reported.
Instead, Bybit plans to establish a presence in the US through a separate entity, reportedly led by former co-CEO Helen Liu, with a local partner providing the necessary licenses and compliance, while Bybit contributes its technology, products, and liquidity. The collaboration between Coinbase and Bybit is focused on a global scale, leveraging Bybit's extensive international reach, particularly in regions like Asia, where users may be interested in accessing tokenized US stocks. The two companies are investigating potential synergies in the custody and distribution of these assets.
The source emphasized that the US is home to desirable assets that global users want to access, and by working together, Coinbase and Bybit can bring these assets to a broader market. The partnership aims to capitalize on the growing trend of tokenization, which is expected to make any asset accessible to users worldwide through a single app within the next five years. As one industry insider noted, even if Coinbase becomes a dominant player in the US, its reach would still be limited to the US market, highlighting the potential benefits of the partnership with Bybit.
The exploration of tokenized stocks by Coinbase and Bybit comes as other market players are also pursuing similar partnerships, such as Intercontinental Exchange's investment in OKX and Deutsche Boerse's strategic investment in Kraken. Both Bybit and Coinbase declined to comment on the matter.